By Nicolas Bickel, Group Head of Investment Private Banking & CIO
More than 100 days after the start of the conflict in the Middle East, conditions in the financial markets have heightened investor anxiety. At the center of all concerns is the issue of inflation and its impact on monetary policy and global growth, as geopolitical tensions between the United States and Iran have escalated prior to the announcement of an agreement to be signed on June 19 in Switzerland. Furthermore, the artificial intelligence (AI) sector—which had driven U.S. indices to new highs in late May—has faced some turbulence, driven by the end of the era of monetary easing, growing doubts about AI’s profitability (difficulties in monetizing its services at this stage), the increased reliance on debt and share issuances, and high valuations for certain players in the sector.
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